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AZO vs. YUMC: A Head-to-Head Stock Comparison

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Here’s a clear look at AZO and YUMC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

AZO’s market capitalization of 63.05 billion USD is substantially larger than YUMC’s 17.08 billion USD, indicating a significant difference in their market valuations.

With betas of 0.40 for AZO and 0.27 for YUMC, both stocks show similar sensitivity to overall market movements.

SymbolAZOYUMC
Company NameAutoZone, Inc.Yum China Holdings, Inc.
CountryUSCN
SectorConsumer CyclicalConsumer Cyclical
IndustrySpecialty RetailRestaurants
CEOPhilip B. Daniele IIIJoey Wat
Price3,769.26 USD45.76 USD
Market Cap63.05 billion USD17.08 billion USD
Beta0.400.27
ExchangeNYSENYSE
IPO DateApril 2, 1991October 17, 2016
ADRNoNo

Historical Performance

This chart compares the performance of AZO and YUMC by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

AZO vs. YUMC: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

AZO

-57.43%

Specialty Retail Industry

Max
70.52%
Q3
29.03%
Median
10.90%
Q1
-7.86%
Min
-57.43%

AZO has a negative Return on Equity of -57.43%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

YUMC

15.70%

Restaurants Industry

Max
83.01%
Q3
24.17%
Median
4.72%
Q1
-17.91%
Min
-41.05%

YUMC’s Return on Equity of 15.70% is on par with the norm for the Restaurants industry, indicating its profitability relative to shareholder equity is typical for the sector.

AZO vs. YUMC: A comparison of their ROE against their respective Specialty Retail and Restaurants industry benchmarks.

Return on Invested Capital

AZO

15.20%

Specialty Retail Industry

Max
29.46%
Q3
13.75%
Median
8.05%
Q1
0.80%
Min
-17.95%

In the upper quartile for the Specialty Retail industry, AZO’s Return on Invested Capital of 15.20% signifies a highly effective use of its capital to generate profits when compared to its peers.

YUMC

9.25%

Restaurants Industry

Max
38.20%
Q3
18.01%
Median
7.53%
Q1
3.71%
Min
-16.20%

YUMC’s Return on Invested Capital of 9.25% is in line with the norm for the Restaurants industry, reflecting a standard level of efficiency in generating profits from its capital base.

AZO vs. YUMC: A comparison of their ROIC against their respective Specialty Retail and Restaurants industry benchmarks.

Net Profit Margin

AZO

13.56%

Specialty Retail Industry

Max
19.78%
Q3
8.49%
Median
3.43%
Q1
-0.69%
Min
-9.88%

A Net Profit Margin of 13.56% places AZO in the upper quartile for the Specialty Retail industry, signifying strong profitability and more effective cost management than most of its peers.

YUMC

8.09%

Restaurants Industry

Max
18.42%
Q3
9.58%
Median
4.33%
Q1
1.40%
Min
-4.06%

YUMC’s Net Profit Margin of 8.09% is aligned with the median group of its peers in the Restaurants industry. This indicates its ability to convert revenue into profit is typical for the sector.

AZO vs. YUMC: A comparison of their Net Profit Margin against their respective Specialty Retail and Restaurants industry benchmarks.

Operating Profit Margin

AZO

19.63%

Specialty Retail Industry

Max
24.47%
Q3
11.10%
Median
5.85%
Q1
0.66%
Min
-12.62%

An Operating Profit Margin of 19.63% places AZO in the upper quartile for the Specialty Retail industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

YUMC

10.48%

Restaurants Industry

Max
25.80%
Q3
13.59%
Median
8.04%
Q1
2.94%
Min
-4.23%

YUMC’s Operating Profit Margin of 10.48% is around the midpoint for the Restaurants industry, indicating that its efficiency in managing core business operations is typical for the sector.

AZO vs. YUMC: A comparison of their Operating Margin against their respective Specialty Retail and Restaurants industry benchmarks.

Profitability at a Glance

SymbolAZOYUMC
Return on Equity (TTM)-57.43%15.70%
Return on Assets (TTM)13.77%8.33%
Return on Invested Capital (TTM)15.20%9.25%
Net Profit Margin (TTM)13.56%8.09%
Operating Profit Margin (TTM)19.63%10.48%
Gross Profit Margin (TTM)52.95%16.94%

Financial Strength

Current Ratio

AZO

0.75

Specialty Retail Industry

Max
3.24
Q3
1.99
Median
1.42
Q1
1.02
Min
0.54

AZO’s Current Ratio of 0.75 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

YUMC

1.26

Restaurants Industry

Max
3.56
Q3
1.94
Median
0.97
Q1
0.49
Min
0.25

YUMC’s Current Ratio of 1.26 aligns with the median group of the Restaurants industry, indicating that its short-term liquidity is in line with its sector peers.

AZO vs. YUMC: A comparison of their Current Ratio against their respective Specialty Retail and Restaurants industry benchmarks.

Debt-to-Equity Ratio

AZO

-2.99

Specialty Retail Industry

Max
2.72
Q3
1.42
Median
0.87
Q1
0.35
Min
0.01

AZO has a Debt-to-Equity Ratio of -2.99, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.

YUMC

0.34

Restaurants Industry

Max
5.12
Q3
2.53
Median
1.33
Q1
0.59
Min
0.08

Falling into the lower quartile for the Restaurants industry, YUMC’s Debt-to-Equity Ratio of 0.34 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AZO vs. YUMC: A comparison of their D/E Ratio against their respective Specialty Retail and Restaurants industry benchmarks.

Interest Coverage Ratio

AZO

4.36

Specialty Retail Industry

Max
37.34
Q3
17.19
Median
4.28
Q1
0.11
Min
-23.60

AZO’s Interest Coverage Ratio of 4.36 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.

YUMC

--

Restaurants Industry

Max
11.10
Q3
7.32
Median
4.00
Q1
2.29
Min
1.00

Interest Coverage Ratio data for YUMC is currently unavailable.

AZO vs. YUMC: A comparison of their Interest Coverage against their respective Specialty Retail and Restaurants industry benchmarks.

Financial Strength at a Glance

SymbolAZOYUMC
Current Ratio (TTM)0.751.26
Quick Ratio (TTM)0.031.11
Debt-to-Equity Ratio (TTM)-2.990.34
Debt-to-Asset Ratio (TTM)0.640.18
Net Debt-to-EBITDA Ratio (TTM)2.330.64
Interest Coverage Ratio (TTM)4.36--

Growth

The following charts compare key year-over-year (YoY) growth metrics for AZO and YUMC. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AZO vs. YUMC: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AZO vs. YUMC: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AZO vs. YUMC: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AZO

0.00%

Specialty Retail Industry

Max
5.54%
Q3
1.52%
Median
0.00%
Q1
0.00%
Min
0.00%

AZO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

YUMC

1.75%

Restaurants Industry

Max
10.46%
Q3
2.49%
Median
1.37%
Q1
0.00%
Min
0.00%

YUMC’s Dividend Yield of 1.75% is consistent with its peers in the Restaurants industry, providing a dividend return that is standard for its sector.

AZO vs. YUMC: A comparison of their Dividend Yield against their respective Specialty Retail and Restaurants industry benchmarks.

Dividend Payout Ratio

AZO

0.00%

Specialty Retail Industry

Max
177.64%
Q3
9.49%
Median
0.00%
Q1
0.00%
Min
0.00%

AZO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

YUMC

29.87%

Restaurants Industry

Max
110.09%
Q3
54.11%
Median
17.30%
Q1
0.00%
Min
0.00%

YUMC’s Dividend Payout Ratio of 29.87% is within the typical range for the Restaurants industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AZO vs. YUMC: A comparison of their Payout Ratio against their respective Specialty Retail and Restaurants industry benchmarks.

Dividend at a Glance

SymbolAZOYUMC
Dividend Yield (TTM)0.00%1.75%
Dividend Payout Ratio (TTM)0.00%29.87%

Valuation

Price-to-Earnings Ratio

AZO

24.62

Specialty Retail Industry

Max
81.45
Q3
42.51
Median
25.40
Q1
12.72
Min
1.88

AZO’s P/E Ratio of 24.62 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

YUMC

18.78

Restaurants Industry

Max
80.02
Q3
47.50
Median
25.49
Q1
18.87
Min
6.59

In the lower quartile for the Restaurants industry, YUMC’s P/E Ratio of 18.78 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

AZO vs. YUMC: A comparison of their P/E Ratio against their respective Specialty Retail and Restaurants industry benchmarks.

Forward P/E to Growth Ratio

AZO

2.12

Specialty Retail Industry

Max
5.90
Q3
2.79
Median
1.76
Q1
0.69
Min
0.00

AZO’s Forward PEG Ratio of 2.12 is within the middle range of its peers in the Specialty Retail industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

YUMC

3.22

Restaurants Industry

Max
5.62
Q3
3.07
Median
2.17
Q1
1.21
Min
0.01

A Forward PEG Ratio of 3.22 places YUMC in the upper quartile for the Restaurants industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

AZO vs. YUMC: A comparison of their Forward PEG Ratio against their respective Specialty Retail and Restaurants industry benchmarks.

Price-to-Sales Ratio

AZO

3.34

Specialty Retail Industry

Max
5.26
Q3
2.60
Median
1.29
Q1
0.41
Min
0.06

AZO’s P/S Ratio of 3.34 is in the upper echelon for the Specialty Retail industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

YUMC

1.51

Restaurants Industry

Max
6.46
Q3
3.53
Median
2.09
Q1
0.83
Min
0.19

YUMC’s P/S Ratio of 1.51 aligns with the market consensus for the Restaurants industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AZO vs. YUMC: A comparison of their P/S Ratio against their respective Specialty Retail and Restaurants industry benchmarks.

Price-to-Book Ratio

AZO

-15.88

Specialty Retail Industry

Max
12.73
Q3
6.96
Median
3.28
Q1
1.42
Min
0.24

AZO has a negative P/B Ratio of -15.88, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.

YUMC

2.97

Restaurants Industry

Max
21.36
Q3
11.74
Median
4.38
Q1
1.93
Min
0.75

YUMC’s P/B Ratio of 2.97 is within the conventional range for the Restaurants industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AZO vs. YUMC: A comparison of their P/B Ratio against their respective Specialty Retail and Restaurants industry benchmarks.

Valuation at a Glance

SymbolAZOYUMC
Price-to-Earnings Ratio (P/E, TTM)24.6218.78
Forward PEG Ratio (TTM)2.123.22
Price-to-Sales Ratio (P/S, TTM)3.341.51
Price-to-Book Ratio (P/B, TTM)-15.882.97
Price-to-Free Cash Flow Ratio (P/FCF, TTM)31.4921.94
EV-to-EBITDA (TTM)14.9910.37
EV-to-Sales (TTM)3.951.61